Whether you’re a first-time landlord or an experienced property owner, understanding a property manager’s key responsibilities can significantly impact your property’s success and profitability. In this blog post, we’ll explore the essential duties of a property manager and explain why having one is not just a convenience but a necessity for efficient property management.

What are property managers?

Property managers run the everyday operations of real estate properties for their owners. One cannot overstate the importance of property management, as it ensures that properties are running smoothly, making money and complying with local laws and regulations. Managers of properties run different types of properties. That includes residential, industrial, and commercial property. Naturally, each of these comes with its challenges and responsibilities.

What does a property manager do: Key responsibilities

What do property managers do? A property manager’s job is a many-sided one with a lot of work and covers a wide range of duties. These are some of them:

Tenant management

Understanding the qualities of a good tenant is a key part of the property manager job description. This involves finding prospective tenants and screening tenants to check that they are reliable and suitable for properties.

Property managers deal with all aspects of work related to tenants, including communication, lease agreements and renewals. They also address any complaints or tenant concerns that pop up. Through effectively managing these relationships, property managers help to satisfy tenants and keep them happy.

Property maintenance and repairs

Regular inspections and upkeep are crucial for maintaining a property’s value and safety. Property managers oversee repairs, and emergency and maintenance tasks to address issues promptly. They also ensure compliance with all health and safety regulations for rental properties, providing peace of mind for both owners and tenants.

Financial management

Managing finances relating to properties is a vital aspect of property management in the real estate industry. Property managers set and collect rent and manage property budgets and expenses. They hand financial reports to property owners. Managers of properties also handle evictions and negotiate rent increases, ensuring that the property remains financially stable and profitable.

Marketing and advertising

To keep properties filled with suitable tenants, property managers promote vacant properties through different marketing channels and strategies. They create appealing property listings to attract potential tenants using their knowledge of the property market to show the property’s features. By employing targeted marketing efforts, they optimise rental income for property owners.

Legal and regulatory compliance

Property managers must understand local, state and federal property laws to ensure that properties meet all legal requirements. They handle legal disputes and documentation, such as damage by tenants, to protect property owners from legal issues. And they guarantee that all operations are above board. Staying current with changing regulations helps investment property owners avoid costly fines and legal complications.

The benefits of engaging a property management company

Investing in property management may be the best decision you make as a landlord.

Firstly, they save time and reduce stress by handling all the day-to-day responsibilities of property management.

Property managers also increase the value and profitability of properties by ensuring that they are maintained well and efficiently managed.

Additionally, they work to provide a better experience for tenants, which can lead to higher tenant retention and satisfaction.

Curious about your property’s rental value?

Find out how much rent you could be earning – Request a free rent appraisal today!

Request a rent appraisal

How to choose the right property manager

Choosing the right property manager is crucial for the success of your investment property. Therefore, you want to look for qualities like experience, local market knowledge and great communication skills.

During the hiring process, ask your property manager questions to determine if they are the right fit, such as the tenant screening process and maintenance procedures. Carefully checking references and reviews can also yield valuable insights into how they perform and how reliable they are. If they do free rent appraisals, that’s a bonus.

Maximise your investment with professional property management

Understanding what property managers do and the benefits they bring can help you make good decisions about property management. Better decisions increase your chances of success. A professional property manager can give you the expertise and support you need, whether you’re a first-time investor, a multiple homeowner or someone wanting to lease out your home.

At HKY Real Estate, we have a team of experienced and professional property managers across Perth who understand the ins and outs of the real estate market. If you’re looking to lease your property, contact HKY Real Estate today to learn how we can help you.

For more information on our Perth property management company and the services we offer, visit our property management page or check out our landlord resources and blogs.

Have more questions?

Get in touch

10 qualities of a good tenant

1. A detailed application

A thorough and meticulously filled-out rental application is the first sign of a conscientious tenant. It demonstrates an individual’s seriousness about the tenancy and provides landlords with the necessary information to conduct background and reference checks. A detailed rental application should include current and previous employment, rental history, references, and any other information that can attest to the applicant’s reliability and stability.

2. Good rental history

A tenant’s past can often predict their future behaviour. A good rental record, with positive feedback from previous landlords or property managers, indicates a pattern of responsible tenancy. The tenant’s rental history reassures landlords of a tenant’s credibility, showcasing their consistency in paying rent on time, maintaining the rental property, and adhering to lease agreements.

3. Open communication

Effective communication is the cornerstone of any successful landlord-tenant relationship. Tenants who proactively communicate with their landlord about repairs, maintenance issues, or other concerns demonstrate responsibility and respect for the property. Open lines of communication can prevent minor issues from escalating and ensure that both parties are always on the same page.

4. Pay rent on time

Timeliness in rent payments is perhaps the most critical quality of a good tenant. It reflects financial stability and reliability, directly impacting the landlord’s ability to manage their property. Consistent on-time payments build trust and reduce the administrative burden of chasing late payments.

5. Treat the property as your own

Tenants who treat the rental property with the same care as they would their own home are invaluable. This includes keeping the property clean, maintaining the gardens and reporting maintenance in a timely manner. Good tenants maintain the property’s value and contribute to a positive and long-lasting landlord-tenant relationship.

6. Address maintenance issues

A good tenant pays attention to maintenance issues or property damage that could potentially worsen over time. Instead, they promptly report problems to the landlord or property manager, helping to preserve the property’s condition and value. By addressing emergency or maintenance issues early, tenants can prevent more significant problems and expenses later on.

7. Accommodates landlords and property managers

Cooperation with the landlord or property manager, especially regarding access to the property for repairs or rent inspections and being considerate towards neighbours, reflects a tenant’s understanding and respect for the rental agreement. Accommodating tenants makes property management smoother and fosters a positive living environment for everyone involved.

8. Adheres to obligations and terms of the tenancy agreement

Following the lease terms, from restrictions on alterations to the property to the proper use of facilities, signifies a tenant’s respect for their contractual obligations. This adherence includes being upfront and honest about who is living in the property, and ensuring that all occupants are included in the lease agreement to avoid potential legal and safety issues.

9. Upfront and honest

Honesty is a fundamental attribute of a good tenant. This means being upfront about one’s financial situation, and immediately disclosing any changes that might affect the ability to pay rent. In addition, tenants who are transparent about their living situation, including being upfront about who resides in the property, ensure that trust is maintained in the tenant-landlord relationship.

An upfront and honest approach prevents misunderstandings and potential breaches of the lease, and a straightforward relationship with their landlord.

10. Long-term tenancy

Tenants who view their rental as a long-term home are more likely to invest in the relationship with their landlord and the care of the property. A desire for stability indicates a tenant’s intention to stay for an extended period, reducing turnover and vacancy rates for the landlord.

Mutual benefits for the tenant, property manager and landlord

Identifying and nurturing these ten qualities in a tenant can significantly contribute to a harmonious and prosperous landlord-tenant relationship. For landlords, selecting tenants who exhibit these characteristics can lead to a stress-free property management experience. For prospective tenants, embodying these qualities can enhance their desirability as renters, making it easier to find and retain a home they love.

Enjoy hassle-free tenancy with HKY Real Estate

Whether you are a landlord striving to find the perfect tenant or a prospective renter aiming to stand out as the ideal candidate, understanding these key traits can significantly impact your success.

At HKY Real Estate, our experienced property managers are dedicated to guiding you through the intricacies of screening tenants, tenant selection and the leasing process. With our expertise, we can help you navigate the competitive market, ensuring that your property is matched with quality tenants who embody these essential qualities.

If you’re seeking professional advice on renting out your investment property or assistance with any aspect of property management, contact our friendly team. Let HKY Real Estate be your partner in achieving a hassle-free and rewarding tenancy experience.

Have more questions?

Get in touch

However, it is important to know that property valuation and appraisal are two different services that provide different results. Each process has a unique purpose and outcome, so understanding these differences is important if you are planning to buy or sell a property.

In this blog, you will learn the difference between a property valuation and a property sales appraisal, what each process entails, and who can provide each service.

What is a property appraisal?

To begin, let’s define what a property appraisal is. An appraisal is an estimate of the value of a property provided by an experienced real estate agent. If you’re thinking of selling your property, an appraisal can give you a solid indication of how much your property could sell for, making it a valuable tool to have in your arsenal.

A real estate appraisal takes into account factors such as recent sales of similar properties in the area, the condition of the property, street appeal and any renovations or upgrades that have been made. If you’re thinking of buying or selling a property or refinancing your mortgage, you may need to obtain an appraisal.

Why would you need a property appraisal?

As a property owner, you may wonder why you would need a property appraisal. The answer is simple: It’s the best way to gauge the local market when planning to sell or lease your property. Although an appraisal isn’t a definitive value, it provides you with an estimate of how much your property could sell for. This information is crucial when making decisions about selling your property.

Property appraisals are an opportunity to gain valuable insights into your property’s worth if you are:

• Considering an investment property purchase
• Upgrading or downsizing your family home
• Renovating and want to find out how your upgrades have impacted its value

Overall, getting a property or rent appraisal can be an excellent tool for sellers or landlords looking to understand the local real estate market.

Who can provide a property appraisal?

In Australia, property appraisals are conducted by licensed real estate agents.

When getting your property appraised, make sure to work with a local real estate agent who has a good understanding of the area and recent sales. Avoid using a real estate agent who normally works outside of your area, as they may not provide an accurate estimate.

At HKY Real Estate, we have a team of certified real estate agents who offer professional, accurate, and timely property appraisals.

When should you get a property appraisal?

While appraisals are estimates rather than definitive values, they are still incredibly helpful in gauging the local market.

As a homeowner, it’s important to know the value of your property, especially if you’re considering selling. That’s where a property appraisal comes in. Not only can it help inform your decisions when it comes to putting a selling price on your home, but it can also give insight into the current market and how your property stacks up against others in the area.

It is advisable to have a property appraisal conducted before listing your property for sale as it helps to determine a fair and reasonable asking price.

But appraisals aren’t just for sellers. If you’re planning on renovating your home, an appraisal can help you understand which upgrades will yield the greatest return on investment. If you’re in the market to buy an investment property, understanding the equity you have in your current property can be a valuable tool in your financial planning. Regardless of your situation, getting a property appraisal can provide clarity and confidence in your real estate decisions.

What is a property valuation?

Property valuations are performed by experienced professionals who assess a property’s market value based on several factors. They compile a detailed report which looks beyond just its location and size.

A qualified valuer inspects the property in person, taking into account important details such as zoning, land title, to the physical condition of the property itself. As well as identifying any easements or encumbrances.

Once the valuer completes their assessment, they’ll compile a comprehensive property valuation report that outlines the property’s true market value.

Why would you need a property valuation?

Valuations are essential for various reasons.

• Looking to get a home loan, refinance, or calculate your equity? Market value is a key factor in determining the loan amount.
• Are you going through a property settlement? A valuation can ensure that both parties are receiving a fair split.
• If you need to prove the value of a deceased estate or are in dispute resolution, a property valuation is essential.
• For property investors, it’s crucial to have a reliable valuation to ensure they are not overpaying or undervaluing a property.
• Property valuations are also useful in cases of divorce, deceased estates, legal disputes, and insurance purposes.
• If you’re selling or buying a property, a valuation can provide you with an accurate figure.

Who can provide a property valuation?

In Australia, a property valuation can be conducted by a licensed property valuer or a certified practising valuer (CPV). It’s critical to partner with a valuer who has experience in valuing properties in the relevant area and can provide accurate and impartial advice.

When would you get a property valuation?

If you’re buying a house and planning to apply for a home loan, it’s highly likely that you’ll need to get a property valuation. These valuations are mandatory for most lenders, as they need to know the accurate value of the property before approving your loan.

Property valuations can also come in handy when dealing with family or partnership settlements, helping to ensure that all parties involved receive a fair deal. Additionally, a property valuation is often necessary when calculating capital gains tax or obtaining a building insurance policy.

Property owners should get their properties valued every three to five years, or when they plan to sell, refinance, or update their insurance policy.

Expert real estate appraisal for your Perth property

Understanding the difference between a property appraisal and a valuation is important when it comes to making wise financial decisions about your property. If you’re a homeowner, buyer, or landlord in Australia, consider obtaining a property appraisal or valuation to gain a better understanding of your property’s value.

If you’re in need of experienced professionals to help with your property appraisal, contact the team at HKY Real Estate for expert guidance and support.

Difference between valuation and appraisal FAQs

Have more questions?

Get in touch

In this article, we will explore some tips for increasing your rent as a landlord.

Why increasing rent is important

As a landlord, increasing your rent can be important for several reasons.

First and foremost, increasing rent can help you cover the rising cost of property taxes, maintenance, repairs, and other expenses associated with owning and leasing a rental property.

By increasing your rent, you can ensure that you are able to cover these costs and maintain the quality of your property.

Additionally, increasing rent can help you keep up with inflation and changes in the rental market. If the demand for rental properties in your area is high, it may be appropriate to increase rent to reflect the market value of your property.

Similarly, if the cost of living in your area is rising, increasing your rent can help you keep up with these changes.

Increasing your rent can also help you ensure that your rental property remains profitable. As a homeowner, your rental property is an investment, and it is important to ensure that your investment is generating a return.

Of course, it is important to approach rent increases in a responsible and reasonable way. Rent increases should be fair and appropriate, and should take into account the needs and circumstances of your tenants.

By increasing rent in a responsible and transparent way, you can ensure that your rental property remains profitable while also maintaining a positive relationship with your tenants.

1. Review your lease agreement

Your lease agreement should outline the terms and conditions under which you can increase your tenants’ rent.

In Western Australia, it’s important for both landlord and tenant to understand the differences between periodic and fixed-term tenancies, as the laws on rent increases differ depending on the type of residential tenancy.

Periodic tenancy:

A periodic agreement with no predetermined finish date. Periodic agreements continue until either the tenant or landlord gives the appropriate notice to end it. Rent increases can occur no less than every 6 months.

Fixed-term tenancy:

Fixed term agreements include a set tenancy period with specific start and finish dates. A fixed term agreement provides more security for both the tenant and landlord. Rent increases can only occur during a fixed term lease, if the lease had provisions for this and the amount and method of the rent increase documented within the terms before signing.

If your fixed-term agreement ends and you continue to rent the same property on a new agreement, the first 30 days of a new and continuing lease can only be at the old rental rate.

Make sure you review the tenancy agreement carefully to ensure that you are following the proper procedures and providing adequate notice to your tenants.

2. Provide enough notice of the increase

As a homeowner, it is important to give your tenants enough rent increase notice and know when rent can be increased. This can help them prepare financially and make any necessary adjustments to their budget.

According to the Department of Mines, Industry Regulations and Safety, if a rent increase was documented in the terms of a fixed term agreement, they can only take place no less than every 6 months after the start of the tenancy agreement and the date of the last increase.

The landlord has to also give at least 60 days notice in writing. The first 30 days of a new and continuing lease will be at the old rental rate to comply with the Residential Tenancies Act.

3. Explain the reason for the increase

When communicating rental increases to your tenants, be transparent about the reasons for the increase. Provide them with the evidence to support the increase, such as a comparative market analysis, showing recently leased properties of similar size, condition and location.

When you are upfront about the reasons for a rental increase, your tenants are more likely to see it as a necessary and reasonable step and are less likely to feel that they are being treated unfairly. This can help to maintain a positive and productive relationship between you and your tenants.

4. Consider rent negotiations

Depending on your tenants’ circumstances, they may request a negotiation on the rent increase. Be open to discussing their concerns and coming to a mutually agreeable solution.

5. Offer incentives when increasing rent

If you are increasing rent significantly, consider offering your tenants some incentives to help offset the increase. Catch up on any overdue maintenance, install improved security or freshen up the interior or exterior of the home.

How much can a landlord increase the rent?

Deciding how much to increase your rent can be a difficult decision, as you want to ensure that you are charging a fair and appropriate price that is both profitable and reasonable for your tenants.

One important factor to consider is the rental market in your area. Research the current market rents for similar properties in your area to get a sense of what a fair and competitive price would be.

If you have made improvements or upgrades to the property since the last rent increase, you may want to consider a rent appraisal to reflect the added value that these improvements bring.

Inflation is another factor to consider when deciding on a rent increase. If the cost of living in your area has risen since the last rent increase, you may need to adjust your rent to keep up with these changes.

Maintenance costs are an ongoing expense for landlords, and it is important to ensure that your rent covers these costs. If your maintenance costs have increased since the last rent increase, you may need to adjust your rent accordingly, but still ensuring the price is within the current market for the area, location, size and condition of the home.

It is also important to consider the impact of a rent increase on your tenants. If the rent increase is too high, it may lead to tenant turnover, which can be costly and disruptive.

How often should you increase your rent?

How often you should increase your rent depends on a number of factors.

In general, it is a good practice to review every 6 – 12 months. This allows you to stay up-to-date with market trends, inflation, and any changes in maintenance and improvement costs.

It also provides a consistent timeline for tenants to expect potential rent increases and budget accordingly.

However, it is important to keep in mind that each situation may be unique and may require more or less frequent rent increases.

Ultimately, the decision to increase rent and the frequency of rent increases should be made with careful consideration of your unique circumstances and goals as a homeowner.

Hire a professional property manager

Are you tired of the hassle and stress that comes with managing your rental property?

Let HKY Real Estate take the burden off your shoulders! Our team of experienced property managers will ensure that your property is always in top shape and that your tenants are happy.

With our comprehensive rental property management services, you can rest easy knowing that your investment is in good hands.

Contact us today to learn more about how a property manager can help you maximise your rental property’s potential.

Have more questions?

Get in touch

By following some basic guidelines and being prepared to rent out your property, you can ensure a successful rental experience for both you and your tenants.

What to do before you rent out your investment property

In order to lease your investment property, there are several steps you will need to take.

First, you will need to ensure that the rental property is in good condition and meets minimum security and smoke alarm / RCD legislations.

Next, you will need to determine fair market rent for the property and set the rental rate accordingly. To help increase the value of your property and the amount you can make from rental income, think about simple things you can make to help appeal to potential renters.

This can include:

• Re-painting and refreshing the wall paints, touching up any chips to door frames and making it as clean and tidy as possible.
• Improving the exterior of the property, such as tidying up the gardens and sweeping paved areas and removing weeds.

It’s important to remember that not all of these strategies will work for every property, so it’s a good idea to consult with a good property manager to determine which strategies will be most effective for your specific property.

Know your responsibilities as a landlord

Now let’s talk about your duties as a landlord and your legal obligations. Firstly, it is essential to keep accurate records of all income and expenses related to the rental property, as this will help you stay organised and compliant with any relevant tax laws.

Another thing to consider with landlord renting is that you will also need to comply with all local and state landlord-tenant laws. This includes providing tenants with a copy of the lease agreement, as well as giving them notice before entering the property.

You also need to be prepared to handle any issues that may arise during the tenancy, such as maintenance requests or late rent payments. It is important to handle these situations in a timely manner and in accordance with the rental laws, to avoid any legal complications.

Know what to charge

Determining the fair market rent for your rental property can be a complex process.

One of the first things to consider is researching comparable properties in the same area. This will give you an idea of the going rate for similar properties and will help you set a competitive rental rate.

Another approach is to check with a local property manager and conduct a rent appraisal. A local property manager will have a good understanding of the local market and can help you determine a fair rent for your property. They will also have access to a large database of tenants waiting for a property.

When setting the rent an experienced property manager can help you adjust the pricing based on recent leasing history of comparable properties and adjust the price for any unique features such as a pool or a view.

Another important factor to consider is the local rental market conditions. If there is a high demand for rental properties in your area, you may be able to charge more rent. However, if the market is slow, you may need to adjust your rental rate accordingly.

It’s important to remember that rental rates can vary depending on the location, size, and condition of your investment property, so it’s a good idea to research the market and consult with local property managers before setting your rental rate.

Also, it’s important to review the lease agreement and rental rate periodically based on the market and the conditions of your tenants lease, to ensure that you are charging a fair and competitive rental price.

Find the right tenants for your rental property

Finding the right tenants for your investment property is essential for a successful rental experience.

• Advertise: The first step is to advertise your property, by listing it on all the major rental websites using high-quality pictures and a detailed description of the property. This will help to attract potential tenants who are interested in your property.
• Visual walkthrough: In addition to photos, having a video walkthrough helps applicants who may not be able to view it in person.
• Screening: Next, screen potential tenants by reviewing their credit, employment, and rental history. You can use online tenant screening services to run background checks on potential tenants.
• Interviews: Additionally, conduct face-to-face or phone interviews with potential tenants, and ask them questions about their lifestyle, employment, and rental history.
• References: It’s also important to check references by contacting the tenant’s current and previous landlords to get an idea of their rental history.
• Finances: Verify the tenant’s income by asking for pay slips and confirming employment with their employers. Some red flags during the screening process, such as previous evictions, a history of late rent payments, or a high debt-to-income ratio.

Another option to consider is using a property manager. Property managers can handle the screening process and also handle the day-to-day management of the property, including rent collection and arranging maintenance and lease renewals. With this option, you need to choose the right property manager and consider any property management fees.

Create a lease agreement

Creating a lease agreement, also known as a residential tenancy agreement, with a new tenant is a crucial step in the rental process. It should include important elements such as the property information, which includes the address of the property, the names of the landlord and tenant, and the date the lease agreement is signed.

• The rent and security deposit, or rental bond, including the amount of rent due each month, the due date, and the method of payment should be included as well as the amount of the rental bond and the terms for its return at the end of the lease.
• You also need to add the term of the lease, including the length of the lease, whether it is month-to-month or for a specific term, and the date the lease begins and ends.
• It’s also important to include details on the lease for any extra items or responsibilities each party will be responsible for.
• You also need to include occupancy limits and prohibited activities such as smoking, pets, and unauthorised alterations to the property.
• You need to specify the notice and termination and the conditions under which the lease can be terminated.

It’s important to have a lawyer or professional property manager review the lease agreement before it is signed to ensure that it is legally binding and complies with all state and local laws. Once the lease agreement is signed by all property owners or a property manager on your behalf and the tenants, it becomes a legally binding contract and both parties are expected to abide by its terms and conditions.

Address any problems

As a landlord, it is crucial to address any problems with maintenance or other issues in a timely and effective manner. Here are some steps you can take to address these issues.

• Make sure your tenants know how to contact you and that you are available to respond to their requests in a timely manner.
• Have a written policy in place that outlines the procedures for reporting and addressing maintenance issues. Make sure your tenants are aware of this policy when they first rent out your property and understand it.
• Address maintenance requests as soon as possible to minimise the disruption to your tenant’s daily life.
• Handle emergency repairs, such as a leaky roof or broken furnace, as a priority.
• Keep detailed records of all maintenance requests, repairs, and rent inspections. This will help you stay organised and will also be useful in case of any legal disputes.

It’s important to be responsive and professional when addressing emergencies and maintenance issues and to maintain a good relationship with your tenants. By addressing issues in a timely and effective manner, you can help to ensure a positive rental experience for your tenants and minimise potential legal issues.

Get help from an experienced property manager

Are you looking to rent out your investment property but you’re not sure where to start? We can help! Let the property management experts at HKY take care of all the details so you can enjoy a stress-free experience. Our knowledgeable team will make sure this process runs smoothly and keep you up-to-date along the way.

HKY Real Estate is your trusted partner for this new undertaking. We are an independently owned real estate agency that currently manages millions of dollars worth of Perth real estate.

Contact us to start your rental journey the right way.

Renting out your property FAQs

Have more questions?

Get in touch